Strange trading volumes, page-29

A-N

DLS holders buying in at these 60cent levels are owed at least 10-15cents out of the recent oil bounce. So the way I see it there is a latent 10-15cent profit in the stock at these prices hence a good buying opportunity. The near term bottom in oil has been made in my opinion and on the way down DLS looked to me to be losing about 4% per day for many days in a row. Soon enough the broader US and Australian market will stop taking their leads from China as that market finds its level and the China theme will be in the rear view mirror. Once this happens and our markets find their rhythm again and once we see some green days on the Australian market I'm expecting to see a few daily rises of 4% on the DLS share price. Of course there is also the possibility that the crash in US market last Monday was just the start and the world is actually going into a deflationary spiral and the Fed will lift rates just at the wrong time, tanking the markets and sending the US and all other economies into a long and devastating recession. Now who truly believes that will happen if it can be avoided? The Feds last lines of defence for the markets are too manipulate the oil price up, change its hawkish tone on interest rates and start the printing presses up again.....in that order. We have seen the first defensive move for the markets with the sudden manipulation of the oil price upwards. The Fed is currently holding its powder dry for the moment on their language. Better to keep the language hawkish for the time being. That way if there is more market turmoil they can try and arrest it by taking the rate rise off the table.....their words will have more force if hawkish tones change to dovish tones abruptly, rather than starting from a half dovish position (second line of defence). And finally they also have more money printing if things get really desperate although this time around it is hard to know if it will be as eagerly embraced by the market. So on the balance of probabilities IMHO the world is not ending, the markets will get another boost before Xmas when they get the message they all want to hear, that rate rises will be delayed, and the price of DLS will tick, first quickly up then slowly up towards $1.00 again. I think the top this time will be found somewhere around 90-95cents.

Eshmun